Section 286 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 286(1) and (2) set the basic time limits for completing assessment and reassessment. Sub-sections (3) to (8) then say which periods are left out when counting those limits, give the Assessing Officer a minimum of sixty days after the exclusion, and add a few deeming rules. This article reads them as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. The Table of basic limits is in our article on section 286(1) and (2).
In computing the time limit for completion, ten kinds of period are excluded: for example, a stay granted by a court, the time a Valuation Officer takes to report, the time taken by a Board for Advance Rulings, and the wait for information under a tax treaty (capped at one year). If, after the exclusion, less than sixty days remain, the remainder is extended to sixty days.
Sub-section (3): the ten excluded periods
For the purposes of section 286, in computing the time limit for completion, the following periods shall be excluded.
| Clause | Period excluded |
|---|---|
| (a) | The time taken in reopening the whole or any part of the proceeding on request of the assessee, or in giving an opportunity to the assessee to be re-heard under section 244 |
| (b) | The period commencing on the date a stay on assessment proceedings was granted by an order or injunction of any court and ending on the date on which the certified copy of the order vacating the stay is received by the jurisdictional Principal Commissioner or Commissioner |
| (c) | The period from the date on which the Assessing Officer intimates the Central Government or the prescribed authority the contravention of the provisions of Schedule III (Table: serial numbers 23, 24, 25) or section 270(11)(i), ending with the date on which the copy of the order withdrawing the approval or rescinding the notification, as the case may be, is received by the Assessing Officer |
| (d) | The period from the date on which the Assessing Officer directs the assessee to get his accounts audited or inventory valued under section 268(5), ending (i) with the last date on which the assessee is required to furnish the report of the audit or valuation; or (ii) where the direction is challenged before a court, with the date on which the order setting aside the direction is received by the Principal Commissioner or Commissioner |
| (e) | The period from the date on which the Assessing Officer makes a reference to the Valuation Officer under section 269(1), ending with the date on which the Valuation Officer's report is received by him |
| (f) | The period (not exceeding sixty days) from the date on which the Assessing Officer received the declaration under section 375(1), ending with the date on which his order under section 375(3) is made |
| (g) | The period from the date on which an application is made before the Board for Advance Rulings under section 383(1), ending with the date on which the order rejecting the application, or the advance ruling pronounced, is received by the jurisdictional Principal Commissioner or Commissioner under section 384(5) or (8), as the case may be |
| (h) | The period from the date on which a reference, or the first of the references, for exchange of information is made by an authority competent under an agreement referred to in section 159, ending with the date on which the information requested is last received by the jurisdictional Principal Commissioner or Commissioner, or one year, whichever is less |
| (i) | The period from the date on which a reference for declaration of an arrangement to be an impermissible avoidance arrangement is received by the jurisdictional Principal Commissioner or Commissioner under section 274(1), ending on the date on which a direction under sub-section (3) or (6), or an order under sub-section (5), of that section is received by the Assessing Officer |
| (j) | The period from the date on which the Assessing Officer makes a reference to the jurisdictional Principal Commissioner or Commissioner under section 270(13), ending with the date on which the copy of the order under section 351(2)(ii)(A) or (B) is received by the Assessing Officer |
A footnote (number 61) is printed in the middle of clause (c) in the copy consulted. It concerns sub-section (2) and has no bearing on clause (c); the clause is read here as one continuous provision.
Reading the clauses
- Caps. Two clauses have a cap. Clause (f) caps the exclusion at sixty days. Clause (h) ends at the date the information is last received, or one year, whichever is less.
- Other sections. Clause (e) links to section 269 (valuation of assets) and clause (i) links to section 274 (the avoidance arrangement reference); see our articles on section 269 and section 274. Clause (h) refers to agreements under section 159; our note on section 159 covers that. Clause (d) refers to section 268(5).
- Disputed orders. If you think an order was made out of time, our legal dispute resolution team can help you test it against these clauses.
- Open-ended periods. Clauses (b), (c), (d)(ii), (e), (g) and (i) end only when a document is received, which may be later than the party who requested it expects.
Sub-section (4): minimum of sixty days
Where immediately after exclusion of the periods in sub-section (3) the remaining period for completion available to the Assessing Officer, as specified in sub-section (1), for making an order of assessment, reassessment or recomputation, is less than sixty days, the remaining period is extended to sixty days. The time limits for completion are deemed to have been extended accordingly.
Sub-section (5): Transfer Pricing Officer extended to sixty days
Where the period available to the Transfer Pricing Officer is extended to sixty days as per section 166(8), and the remaining period for completion available to the Assessing Officer under section 286 is less than sixty days, that remainder is extended to sixty days and the time limit is deemed extended accordingly.
Sub-section (6): Interim Board for Settlement
Sub-section (6) refers to a proceeding before the Interim Board for Settlement that abates under section 245HA of the Income-tax Act, 1961 (43 of 1961). After the exclusion of the period under section 245HA(4) of that Act, if the remaining period of limitation under section 286 is less than one year, it is deemed extended to one year. The same rule applies, as the sub-section states, for determining the limitation under sections 282, 287, 288 and 296 and for the purposes of interest under section 437. The Act refers to a provision of the earlier Act here; read that law for its meaning, as this article does not explain it.
Sub-section (7): end-of-month extension
Where the remaining time for making an order of regular assessment or reassessment, after excluding the period in sub-section (3)(j), ends before the end of the month, the remaining period is extended to the end of that month and the time limit is deemed extended accordingly.
Sub-section (8): income excluded in one year or from one person
For the purposes of section 286 and section 283, where by an order referred to in the Table entry in sub-section (1) (printed as "Table: Sl. No. 8.A"; this is row 8 of the Table), the following happens:
- (i) any income is excluded from the total income of the assessee for a tax year, then an assessment of that income for another tax year is deemed to be one made in consequence of, or to give effect to, a finding or direction in the order; or
- (ii) any income is excluded from the total income of one person and held to be the income of another person, then an assessment of that income on such other person is deemed to be one made in consequence of, or to give effect to, a finding or direction in the order, if that other person was given an opportunity of being heard before the order was passed.
The effect is that the row 8 limit, and section 283, can be used to assess the same income in another year or on another person, subject to the hearing condition in clause (ii). Our article on sections 283 to 285 explains section 283.
A worked example
Names and dates are assumed.
Harbour Metals Ltd's assessment order for a tax year must be made by 31 March 2029 under the Table in sub-section (1).
- Valuation reference. The Assessing Officer makes a reference to the Valuation Officer under section 269(1) on 1 June 2028 and receives the report on 31 July 2028. If both days are counted, that is 61 days (30 days in June and 31 in July). Under clause (e) that period is excluded. The limit becomes 31 March 2029 plus 61 days, which is 31 May 2029.
- Minimum of sixty days. Suppose instead that, after all exclusions, only 20 days remained of the original limit. Under sub-section (4) the remaining period is extended to sixty days.
- Treaty information. If a reference for exchange of information under an agreement referred to in section 159 is made on 1 September 2028 and the last information arrives on 1 November 2029, clause (h) excludes the shorter of that period and one year. The exclusion is one year, not the longer period.
Need help with time-barred orders?
Counting exclusions needs the dates of references, stays and receipts, which often sit in different files. If you are checking whether an assessment or reassessment order was made in time, our team can help you build the date chain and read it against section 286. See our legal dispute resolution service.
Key takeaways
- Sub-section (3) excludes ten periods in computing the time limit for completion of assessment, reassessment or recomputation.
- Clause (f) is capped at sixty days; clause (h) is capped at one year; the other clauses end on a stated date or receipt.
- If the remaining period after exclusion is below sixty days, it is extended to sixty days (sub-section (4); sub-section (5) for Transfer Pricing Officer cases).
- Sub-section (6) gives a minimum of one year in a case of abatement before the Interim Board for Settlement, by reference to a section of the earlier Act as the Act prints it.
- Sub-section (7) extends a period that ends before month-end to the end of that month.
- Sub-section (8) lets income excluded in one year or from one person be assessed in another year or on another person as a giving-effect assessment.
Read next
- Section 286(1) and (2): time limits for completion of assessment
- Section 287: rectification of mistake
- Section 269: estimation of value by the Valuation Officer
- Chapter XVI: procedure for assessment
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.